RBI lowers inflation target for first half of FY19 to 4.7-5.1 per cent

download (2)Source: The Economic Times, Apr 05, 2018

MUMBAI: The Reserve Bank today lowered retail inflation target for the first half of current fiscal to 4.7-5.1 per cent on sharp moderation in food price rise and likelihood of a normal monsoon.

Its bi-monthly policy review in February, RBI had projected inflation in the 5.1-5.6 per cent range in the first half of 2018-19.

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Retail inflation soften, industrial production grows

Source: The Hindu Business Line, Mar 12, 2018

New Delhi: In what may be seen as improving economic conditions, retail inflation in February eased to 4.4 per cent while industrial production jumped up 7.5 per cent in January.Retail inflation was at 5.07 per cent in January while the Index of Industrial Production grew by 7.1 per cent in December.

According to the data released on Monday, food inflation was at 3.26 per cent in February.


Meanwhile, on a cumulative basis, the IIP grew by 4.1 per cent between April and January 2017-18, which was lower than the 5 per cent growth in the same period a year ago.In January, manufacturing grew by a robust 8.7 per cent, followed by 7.6 per cent increase in electricity generation. However, mining grew by a mere 0.1 per cent in the month.

CPI inflation to trend higher

download (1).jpgSource: Business Standard, Feb 26, 2018

New Delhi: Inflation is expected to trend higher and though RBI may keep policy rates on hold in 2018-19, there are also increasing chances of a rate hike, says a UBS report.

According to the global financial services major, minutes from the February 7 meet of Monetary Policy Committee (MPC) seem “hawkish”, and highlight upside risks to inflation.The Reserve Bank kept the key policy rate unchanged at 6 per cent for the third consecutive time in the last policy meet in view of the firming inflation.

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WPI inflation at 6-month low on cheaper food, fuel

download (3).jpgSource: The Hindu Business Line, Feb 15, 2018

New Delhi: Wholesale inflation eased to a six-month low in January as food articles including fruits and vegetables as well as fuel became cheaper.Data released on Thursday showed that wholesale price index-based inflation stood at 2.84 per cent in January as against 3.58 per cent in December. It was 4.26 per cent in January 2017.

Inflation based on the WPI food index also decreased from 2.91per cent in December, 2017 to 1.65 per cent in January, 2018.

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Retail inflation eases to 5.07% in Jan

download (1)Source: Business Standard, Feb 13, 2018

New Delhi: The economy continued to witness high growth in industrial production in December and retail price inflation in January, despite both declining from their 17-month highs seen in the previous month.

Despite persisting double-digit growth in capital goods and fast-moving consumer goods, the Index of Industrial Production (IIP) expanded at a slower pace of 7.1 per cent in December, from the upward revised 8.8 per cent in November. Provisional estimates had put the November growth at 8.4 per cent. Infrastructure and construction grew 6.7 per cent, against 13.89 per cent in November.

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Average inflation dips to 6-yr low of 3.3% in 2017-18: Economic Survey

Source: The Economic Times, Jan 29, 2018

NEW DELHI: The Economic Survey today said the average retail inflation has declined to a six-year low of 3.3 per cent in 2017-18, with the economy moving towards a more stable price regime. The survey for 2017-18 was tabled by Finance Minister Arun Jaitley in Parliament today. He is scheduled to present the last full budget of the current Narendra Modi-led NDA government on February 1.

“Controlling inflation has been a priority area for the central government,” the survey said, adding that inflation in the country continued to moderate during 2017-18.

Consumer Price Index (CPI) based headline inflation, factored in by the Reserve Bank while arriving at its bi- monthly monetary policy, averaged 3.3 per cent during the period which “is the lowest” in the last six financial years.

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Nov WPI inflation jumps to 3.93% on high onion, veggie prices

download (15).jpgSource: Business Standard, Dec 15, 2017

New Delhi: Inflation based on wholesale prices accelerated to an eight-month high of 3.93 per cent in November due to a sharp rise in onion prices and costlier seasonal vegetables, government data showed on Thursday. Calculated on wholesale price index (WPI), the inflation was 3.59 per cent in October this year, and 1.82 per cent in November last year.

The November figure is the highest so far this fiscal year (FY18) and the previous high was when the WPI touched 3.85 per cent in April.

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